News

21
Feb

AFH completes 5th acquisition

Bromsgrove-based national consolidator AFH, led by Alan Hudson (pictured), has announced the acquisition of Devon-based Bay Financial Management for a consideration which could reach £1.4M
Bay Financial currently manages £73M of funds and has 3 advisers. Directors Seamus Coleman and Simon Durant, will join AFH along with adviser Nigel Hull.
The deal has been structured in such a way that an initially consideration of £595,00 has been paid, and then depending o targets and performance a further £805,000 could be paid during the following 2 years. If the full sum of £1.4M is achieved the business will have been valued at 1.9% of FUM, slightly higher than the industry average of 1.8% of FUM, although it is unclear what the ongoing advice fee is, which significantly affects the considerations paid for businesses.
Alan Hudson commented:
‘The acquisition of Bay is our fifth acquisition this year and will be integrated in line with our established model to enhance shareholder value during the current financial year. We continue to have a strong pipeline of future acquisition opportunities,’